Jiangnan Water(SH:601199)2014-10-30 16:00Financial Performance - Net profit attributable to shareholders increased by 14.25% to CNY 117,480,810.67 year-to-date[6] - Operating revenue rose by 8.61% to CNY 455,396,868.02 for the year-to-date period[6] - Basic earnings per share increased by 13.64% to CNY 0.50[8] - Net profit excluding non-recurring gains and losses increased by 24.34% to CNY 114,641,642.49 year-to-date[6] - Weighted average return on equity improved by 0.46 percentage points to 6.25%[6] - Net profit attributable to shareholders for the year-to-date period reached CNY 156,961,548.99, an increase of 20.8% compared to CNY 129,955,779.52 in the previous year[48] - Operating profit for the period increased to CNY 59,821,728.93, up 23.0% from CNY 48,656,262.19 in Q3 2013[48] - Operating profit for the first nine months of 2014 was CNY 103,332,421.85, a 19.8% increase from CNY 86,230,438.80 in the same period last year[51] - The total profit for Q3 2014 was CNY 47,241,928.00, an increase of 35% compared to CNY 35,029,187.05 in Q3 2013[52] Assets and Liabilities - Total assets increased by 9.17% to CNY 3,297,936,976.62 compared to the end of the previous year[6] - Jiangnan Water's total liabilities increased significantly, with accounts payable rising by 112.17% to CNY 41,480,000.00, reflecting the use of bank acceptance bills for payments[17] - The company reported a loss of CNY 2,714,696.15 from the disposal of non-current assets[9] - The company's inventory rose by 52.06% to CNY 234,449,884.17, mainly due to new engineering projects undertaken by its subsidiary[16] - The company's construction in progress increased by 130.76% to CNY 209,332,592.20, driven by ongoing pipeline construction projects[16] - Total assets as of September 30, 2014, amounted to CNY 2,611,461,007.45, compared to CNY 2,405,028,392.37 at the beginning of the year, reflecting a growth of 8.6%[45] - Total liabilities increased to CNY 846,571,428.69, up from CNY 672,917,767.84, representing a rise of 25.7%[45] Cash Flow - Cash flow from operating activities decreased by 11.81% to CNY 307,597,725.32 year-to-date[6] - Cash flow from operating activities for the first nine months of 2014 was CNY 307,597,725.32, down from CNY 348,802,933.54 in the previous year[55] - Cash flow from operating activities totaled $356.83 million, down 5.3% from $376.90 million in the previous year[58] - Investment activities generated a net cash outflow of CNY 214,345,879.75 in the first nine months of 2014, compared to a net outflow of CNY 489,917,788.53 in the same period last year[55] - Total cash inflow from investment activities is $558.84 million, down 20.1% from $698.49 million year-over-year[59] - Cash outflow from investment activities totaled $764.65 million, a decrease of 25.4% compared to $1,025.45 million in the previous year[59] Shareholder Information - The total number of shareholders reached 16,762 by the end of the reporting period[12] - The largest shareholder, Jiangyin Urban and Rural Water Supply Co., Ltd., holds 34.96% of shares[12] - Jiangnan Water's total equity holders' share increased, with major shareholders holding 63.08% of the total shares, indicating strong control over the company[14] - The company has committed to not transferring or entrusting shares held prior to the IPO for a period of 36 months, ensuring stability in shareholding[18] - The company has committed to avoiding competition with its controlling shareholder and related entities, ensuring no similar business activities are conducted during the holding period[24] - As of now, the controlling shareholder has strictly adhered to the commitment to avoid competition[26] Operational Highlights - The company reported a decrease in operating income from non-operating activities by 83.20% to CNY 1,357,209.89, mainly due to reduced government subsidy income[17] - The company plans to construct a new office building on its own land by the end of 2015, replacing the currently leased office space[30] - The company will continue to lease office space from its controlling shareholder at a price adjusted based on the CPI increase for the next ten years[31] - The company has implemented new accounting standards effective July 1, 2014, which do not impact the financial statements for the year 2013[35] - The company has committed to not renewing leases for certain assets after their expiration, ensuring compliance with its commitments[27] Cost Management - Total operating costs for Q3 2014 were CNY 106,485,819.44, down 10.3% from CNY 118,741,150.22 in the same period last year[48] - The company reported a decrease in sales expenses to CNY 16,594,007.59 in Q3 2014 from CNY 14,497,216.26 in Q3 2013, indicating improved cost management[51] - The company recorded a decrease in financial expenses, reporting a net financial income of CNY -3,208,989.78 in Q3 2014 compared to CNY -3,287,388.73 in Q3 2013[51] - Cash paid for purchasing goods and services decreased to $42.70 million from $47.44 million, showing a reduction in operational costs[58]